Cleaner Production Assessment across 42 industries reveals deep efficiency shortfalls, weak monitoring systems and major savings potential through ISO standards adoption….
The Manufacturers Association of Nigeria (MAN) has revealed that weak maintenance practices account for between 10 and 15 per cent of energy waste in Nigerian factories, with most facilities lacking the sub-metering systems required to properly track and manage consumption.
The findings were unveiled at a national stakeholders’ sensitisation workshop on ISO 50001 and ISO 14001 standards held in Lagos, following a Cleaner Production Assessment (CPA) conducted across 42 industries in four geopolitical zones.
The assessment was carried out under the United Nations Industrial Development Organization-supported Industrial Energy Efficiency and Resource Efficiency Cleaner Production Project, backed by the Global Environment Facility. It covered key sectors including food and beverages, basic metals, wood and wood products, textiles and leather, and petrochemicals.
Wide gap between current practice and global standards
Presenting the technical report, Industrial Energy Efficiency and Resource Efficiency Cleaner Production (IEE/RECP) National Expert, Obafemi Adejumo, said the results exposed a significant gap between existing industrial practices and international best standards.
“There is a big gap between where we should be and where we are at the moment,” Adejumo said. “Some industries are doing well with energy efficiency, but many have not fully plugged into it.”
The CPA identified compressed air systems as one of the largest sources of electricity waste, responsible for about 25 per cent of energy losses, largely due to leaks and misuse. In some facilities, optimising compressed air systems allowed operators to completely shut down one compressor, delivering immediate cost savings.
Steam systems accounted for an even larger share of losses at 30 per cent, while lighting contributed 18 per cent. The report also flagged substantial thermal losses from poorly insulated boilers and furnaces, flue gas inefficiencies, motors operating at partial loads, and the absence of Variable Speed Drives.
But perhaps the most fundamental issue was the lack of energy monitoring tools.
“Data gaps are a serious issue,” the assessment noted. “Most facilities lack sub-metering, making it difficult to manage what isn’t measured.”
Grid instability and idle equipment worsen losses
The study found that unreliable grid power in states such as Kano and Anambra further amplifies inefficiencies, while thermal losses were particularly severe in the basic metals and petrochemical sectors.
In textile and leather factories, idle equipment and weak maintenance culture were linked to avoidable energy losses of up to 15 per cent.
However, the assessment also highlighted success stories. A Lagos-based food and beverage plant reduced compressed air leaks by 20 per cent after system optimisation, demonstrating that targeted interventions can deliver measurable results.
Overall, the CPA estimates that industries could cut energy consumption by 20 to 25 per cent, translating to roughly 500 megawatt-hours in annual savings per plant if integrated energy-efficiency measures are adopted.
Water waste and resource mismanagement
Beyond electricity, the project uncovered widespread poor water management practices. National Project Coordinator for the GEF-UNIDO IEE/RECP Project, Jacob Oladipo, said many industries extract water from boreholes without tracking daily usage.
“If you are producing and you don’t know the volume of water you are using, how will you know the volume you are wasting?” he asked.
Oladipo emphasised that recycling water is central to resource efficiency, noting that reusing water reduces overall consumption and prevents waste from being discharged unnecessarily.
He explained that ISO 50001 focuses on structured energy management systems, while ISO 14001 addresses broader resource efficiency and cleaner production practices.
Cost savings, competitiveness and emissions
Adejumo stressed that closing the efficiency gap requires top-level commitment.
“If top management doesn’t buy into it, the facility manager will not be able to drive it,” he said.
He added that the campaign’s core message is rooted in cost savings and competitiveness. Lower energy consumption reduces production costs, strengthens sustainability and enhances a company’s ability to compete in both domestic and global markets.
Inefficiencies also carry environmental consequences. “If you burn more fuel because of inefficiencies, you generate more emissions. We must address that at a national scale,” Adejumo warned.
Turning waste into value
Chief Executive Officer of Spectra Industries Ltd, Duro Kuteyi, described the initiative as an eye-opener for manufacturers, exposing hidden financial leakages in factory operations.
“The system shows industrialists where they are losing money and how to stop it,” he said.
Kuteyi noted that waste heat from generators can be recovered and reused within factories, while waste streams themselves can be commercialised.
“We have already invested energy into producing that waste. It should not simply be trashed. It can be converted to recover part of the cost,” he said, urging industrial leaders to personally undergo ISO training to drive change from the top.
A defining moment for manufacturing
In a welcome address, MAN Director-General Segun Ajayi-Kadir represented by National Technical Coordinator Oluwasegun Osidipe described the project as a turning point for Nigeria’s manufacturing sector.
He said embracing energy efficiency would not only reduce carbon footprints but also cut operating costs and improve resilience in an increasingly competitive global marketplace.
Manufacturers, he added, must lead the transition to sustainable production, while policymakers create an enabling environment that supports energy management systems and cleaner production.
The message from the workshop was clear: Nigeria’s factories are sitting on significant untapped savings. But unlocking them will require data-driven management, stronger maintenance culture, leadership commitment — and a decisive shift toward global best practices.
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